"For Sale By Owner"
Here, the owner assumes all the risk concerning responsibilities relating to the sale of property. If one is very well versed in the laws, procedures and regulations of their area, then one may save some costs associated with the transaction, but not the tedium, and aggravation of the selling process.
Generally, these homes are over-priced. That's because the owner assumes their property is worth more than their neighbor's property. A buyer doesn't know that unless they are represented by an agent.
Generally, these homes have had little done to them in preparation for the sale; things like replacing the carpet, painting, etc. A buyer generally finds something that's visually appealing to their likes and makes a snap decision. Afterwards is when they notice all the things that should have been noticed before. Having a good agent, makes all the difference because they look at each home with educated and experienced eyes and inform you of all the information that's sometimes clouded by one's first impressions in a house that they're really attracted to.
Generally, these homes have been on the market much longer than a home listed with a good agent. That's because they haven't been advertised as well, and thus the home isn't exposed to the greatest quantity of potential buyers. Also, the homeowner's price is usually too high when compared to the value of other property in the area. That may be OK if one is prepared to wait a year or more to make the sale! But most people want to sell their home within a reasonable time. That's only possible if the home is priced right, and prepared for the sale. A good agent knows how to do this, and reveals to the seller the appropriate price and conditions necessary to make a speedy sale. All of this service is based on fact, and sound financial decisions that are needed to sell the property, and at the highest price the seller can expect to receive.